Director Appointment and Convertible Notes Issue

2 March 2012

LP Hill Plc

("LP Hill" or the "Company")

Appointment of Chief Executive Officer and Issue of Convertible Loan Notes

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals exploration and development company operating in Madagascar, is pleased to announce the appointment of Mr. Roy Spencer as Chief Executive Officer (CEO) of the Company with immediate effect and the issue of convertible loan notes.

CEO Appointment

Roy's appointment as CEO will assist in leading the Company's future development as it continues to actively seek further attractive mineral exploration projects focusing on the discovery, analysis and exploitation of, inter alia, precious and base metals and gemstones, the latter being an area in which Roy has particular expertise and experience. 

Roy is a senior mining industry executive with over 40 years' experience in the international mining sector. He has spent many years working in the private sector with governmental and other interest groups in Africa and was formerly CEO of AIM-listed European Diamonds Plc ("European Diamonds) where, in 2005, he was instrumental in developing the company from being a junior explorer into a successful mining and diamond marketer in association with the government of Lesotho. At European Diamonds he, was responsible for, inter alia, leading the evaluation and development of the 300,000 carat per annum Liqhobong Mine operation. Prior to European Diamonds, Roy held the position of Vice President with Archangel Diamond Corporation, formerly listed on the TSX Venture Exchange, which together with its Russian partners, discovered the world class Grib Pipe diamond deposit near the city of Arkhangelsk in 1996. At 16 hectares, Grib remains one of the world's three largest single economic diamond deposits to be discovered to date. Since leaving European Diamonds, Roy has been consulting internationally on a variety of gemstone and other commodity projects.

Issue of Convertible Loan Notes

LP Hill is also pleased to announce that Fisherstreet Management Limited (the "Noteholder"), has today agreed to subscribe £200,000 for convertible unsecured loan notes of the Company (the "Convertible Loan Notes").

The Noteholder is a private investment vehicle whose primary activities are based out of Hong Kong, with the company having both significant and substantial holdings in other AIM quoted companies. It currently has no existing interest in LP Hill.

The Convertible Loan Notes are interest bearing at a rate of 2 per cent. per annum above the base rate of the Royal Bank of Scotland plc from time to time and interest will be compounded annually on the principal outstanding loan amount.

The Convertible Loan Notes are unsecured and repayable on 27 February 2015 or, at the option of the Company, at any time prior to 27 February 2015 with the consent of Strand Hanson Limited, the Company's nominated adviser, such consent not to be unreasonably withheld or delayed. A redemption premium of 20 per cent. of the principal amount is to be paid by the Company in the event of any early repayment by the Company prior to 27 February 2015 or on any balance of the Convertible Loan Notes not ultimately converted into new ordinary shares at the conversion price of 6 pence per share. The Noteholder is entitled to convert all or part of the principal loan amount advanced into new ordinary shares in the Company at a conversion price of 6 pence per ordinary share at any time until the final repayment date. The notes are transferrable in minimum tranches of £5,000 subject to certain limited restrictions.

The Company intends to use the net proceeds from the issue of the Convertible Loan Notes for general working capital purposes. The Company expects to raise additional equity and/or debt finance in due course to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements and potential future development opportunities.

For further information, please contact:

or visit: www.lphill.com.au

Additional information on Mr Roy Spencer:

Roy George Stamford Spencer, aged 63, does not currently hold any other directorships or partnerships. In the last five years he has been a director of the following companies:

Kopane Diamond Developments Limited (formerly European Diamonds Plc)

Kopane Diamond Developments (UK) Limited

Grosvenor Exploration & Mining Services (Pty) Limited

Tamarisk Investment Limited

There is no other information that is required to be disclosed under paragraph (g) of Schedule Two to the AIM Rules for Companies of the London Stock Exchange.